Shares of Trane Technologies PLC (TT) plummeted 7.75% in Wednesday's trading session, despite the company reporting better-than-expected second-quarter earnings and raising its full-year 2025 guidance. The sharp decline suggests that investors may have been expecting even stronger results or are concerned about the company's ability to meet heightened expectations in an uncertain economic environment.

Trane Technologies reported adjusted earnings per share of $3.88 for the second quarter, surpassing the analyst consensus estimate of $3.79. This represents a 17.58% increase from the $3.30 per share reported in the same period last year. However, the company's quarterly revenue of $5.75 billion fell slightly short of analysts' expectations of $5.77 billion, despite showing an 8.27% year-over-year growth.

In a move that would typically be viewed positively, Trane Technologies raised its full-year 2025 guidance. The company now expects adjusted continuing earnings of about $13.05 per share, up from its previous forecast of $12.70 to $12.90. Additionally, Trane increased its annual reported revenue growth projection to approximately 9%, up from the previous range of 7.5% to 8.5%. Despite these upward revisions, the market's negative reaction suggests that investors may be concerned about the company's ability to maintain its growth trajectory or meet the heightened expectations in the face of broader economic uncertainties.